Kibo Energy Share Discussion Threads

[aimchimp] 28/6/2019 12:41

More speculative again with no foundation YAKI did your men on the ground tell you that?

[aimchimp] 28/6/2019 12:40

UKN it a free board for discussion you cannot manage peoples views and opinion

[lurker5] 28/6/2019 11:59

UKN - Exactly. I didn't speculate what method Kibo will use. Thy don't all involve changing the par value. I was merely stating the outcome for shareholders.

Yaki and all re Benga DFS. If Kibo had already paid its £1m, it wouldn't have needed to state that it's discretionary. It may be the auditors insisted on it, otherwise the extra £1m liability / committment might have warranted a 'going concern' comment.
At base, it seems distinctly possible that Kibo might not be able to meet its obligation and will sustain a cut to its Benga shareholding.

(I notice that Benga was not a 'key audit matter' - maybe too small !)

[yaki] 28/6/2019 11:49

lurker

Being a UK energy infrastructure project, I can see it flogged to a specialist asset manager/player, at the right price. Once developed.

That can release a few pounds and fund KIBO for 1-2 years, dilution free.

[uknighted] 28/6/2019 11:18

AimChimp wash your mouth out. By the way, my posts were addressed to Lurker the organ grinder not his monkey!

[uknighted] 28/6/2019 11:17

Lurker I suspect you thought consolidating shares didn’t alter the nominal/par value. Simply consolidating the shares does not mean that they will re-rate, often the share price falls IMO.

[lurker5] 28/6/2019 10:30

UKN - Don't understand your logic. What is wrong with what I said ?

[uknighted] 28/6/2019 10:23

Lurker post 1584. You were wrong with your previous post and 1584 is a sad attempt to justify your error!

[yaki] 28/6/2019 10:13

UKN/Lurker
When shares are consolidated, the par is increased by the consolidation rate by issuing deferred shares which are just an accounting trick.

Say 10:1 consol happens, every 10 shares are swapped for 1 ordinary at 10x par value and 9 deferred shares which are worth nothing, pretty much. Not lawyer/accountant, so no idea why is it done that way

Re Benga, as majority of spending happened this year, don't see why you expect to see any spending in the accounts. Also maybe some of the spending in the accounts to end of 2018 is to do with Benga?

[lurker5] 28/6/2019 10:12

PS Yaki re Med. I think the only hope for Kibo shareholders not to be diluted by subsequent raisings to fund Moz and Bots (or MCPP) is some sort of restructuring of the ownership of Med and its projects. If Kibo spun them off to shareholders, it would be about the most sensible corporate decision he's ever made. But unfortunately he needs the cash for Kibo ! All the result of his muddled strategy to grab too many early stage projects, before even the first has contributed to keeping the share price healthy.

[lurker5] 28/6/2019 10:06

UKN They can use various means, but the end result is a smaller no of shares in issue, that the market (hopefully) will revalue at a higher price (than the original par) so that market cap remains the same and shareholders keep the same value. But it doesn't always turn out like that, especially if seen to be a desperate measure, as was the last consolidation in 2013, after which the shares tanked. (LC didn't admit in the letter he sent shareholders that the consolidation became necessary after the original Muzuri shareholders mostly sold out !)

Re Benga. It was a condition of the acquisition that Kibo contributed £1m to the DFS in order to keep 65%. If the DFS has been done, and Kibo hasn't yet paid its £1m (no evidence in the accounts that it has) its share will be reduced - but we don't know by how much, or whether Kibo has to pay by a deadline.

[uknighted] 28/6/2019 09:53

Lurker when shares are consolidated the nominal value consolidates also.

[yaki] 28/6/2019 09:42

Lurker

What about the possibility of setting up Bordersley and selling the SPV to a specialist infrastructure investor? Ie flipping it?

If they can sell it for a reasonable % of NPV, once is up and running, that can bring a few mlns easily.

Probably why they brought it under Kibo - ease of doing the deal + offset against Kibo tax losses?

Just speculating but have seen it before, in a related sector

lurker5 28 Jun '19 - 09:28 - 1584 of 1586
0 0 0
UKN - because they can't issue at below par (about 1.3p) and there's little chance the shares will stay at that level, especially when the market realises how much they're going to have to raise !

[yaki] 28/6/2019 09:38

At the investor event was interesting that the Benga guy, said that LC was known to do things much much cheaper. I think he mentioned that expected the DFS to costs 1m USD vs 3m USD for a typical such project.

Just from memory

[yaki] 28/6/2019 09:36

But they said that DFS was ready, so how they can get it and not pay for it?
Even isn't a STEAG and KIBO problem. As as far as Benga is concerned, they spent up to 1m and produced the DFS?

lurker5 28 Jun '19 - 09:26 - 1583 of 1584

I think it means they haven't yet paid their £1m share of the DFS and might never do so !!

[lurker5] 28/6/2019 09:28

UKN - because they can't issue at below par (about 1.3p) and there's little chance the shares will stay at that level, especially when the market realises how much they're going to have to raise !

[lurker5] 28/6/2019 09:26

I think it means they haven't yet paid their £1m share of the DFS and might never do so !!

[yaki] 28/6/2019 09:23

lurker

I presume you mean this:

Benga Power Project
Kibo entered into a Joint Venture Agreement (the ‘Benga Power Joint Venture’ or ‘JV’) with Mozambique energy company Termoeléctrica de Benga S.A. to participate in the further assessment and potential development of the Benga Independent Power Project (‘BIPP’). In order to maintain its initial participation interest Kibo is required to ensure funding of a maximum amount of £1 million towards the completion of a Definitive Feasibility Study, however this expenditure is still discretionary.


So my read is that Kibo needs to do the DFS (which I believe is done) and pay the bills towards it, up to MAX 1m
So if they can do it for say, less than that, that should be OK

I don't understand the last bit though - "... however this expenditure is still discretionary."

Anyone any idea?

[uknighted] 28/6/2019 08:55

Lurker, why the need for a share consolidation in order to raise funds?

[lurker5] 28/6/2019 08:43

Annual Report
Seasoned investors look at the notes at the back.
Clappies look at the spin at the front. (they wouldn't understand the notes)
- eg Note 25. Benga £1m committment for DFS to maintain 65% share is 'discretionary' (ie if no cash, Kibo might lose it).
Except that the spin says DFS has been completed and is being studied. Which is it ? Maybe the DFS is complete, but Kibo hasn't paid its share yet.
- and note 24 re Sanderson 'facility'. (also page 23) Only £80,000 left to draw down of the original facility, after which only on a case-by-case basis agreed by Sands.
In other words Kibo definitely in stranglehold by Sands, who certainly won't enter into any more deals at 5.25 P !
So the Sands facility won't avoid need for a Kibo cash raise (in turn needing a share consolidation and shareholder meeting)
All in all - the notes show a dodgier condition than the spin ! (as usual - and that's without the auditor's opinion of MCPP 'value' (note 10) as being way below Kibo's 'spin' when buying back Sands' stake.

[aimchimp] 28/6/2019 08:02

YAKI looking at the track of you and your happy clappy friends telling people to load up on more golden tickets all the way down from 9p as they were a 'bargain' I don't think you should really be one to say that buyers at any price are in the right or in the wrong do you? It's certainly not a positive that someone wants to punt on a trade knowing the lowest price the placing can come in?

[yaki] 28/6/2019 07:58

My dear Chimp, you should have told the poor buyers of 2m shares at the close, they shouldn't have spent their hard earned 22k by buying at 1.1p but rather than that wait for a lower price.

You see how much more good you can do!

AIMChimp 28 Jun '19 - 07:29 - 1576 of 1577

I wonder how many more % it will drop today these ramps and spikes only serve the traders who pump and dump but the long suffering long term holders are left holding the pieces tick tock

[yaki] 28/6/2019 07:51

all this will change, one day.

have you got any views why the sudden change of taking Bordersley inhouse rather than as part of MED?
Tax? Or anticipated transaction?

Before I get accused by anyone, these are just my thoughts and views. Please ignore them if you wish

lurker5 27 Jun '19 - 17:36 - 1574 of 1576

Look at all those spikes the last few years - never held for more than a few days ! Must be a terrible smell of burnt lemmings around somewhere.

[aimchimp] 28/6/2019 07:29

I wonder how many more % it will drop today these ramps and spikes only serve the traders who pump and dump but the long suffering long term holders are left holding the pieces tick tock